News

U.S. and China hit PAUSE on Tariffs

by
Charlotte Freed
| Dec 07, 2018

For now, the trade war between President Trump and Chinese President Xi has quietened. A meeting on Dec. 1 resulted in the two sides agreeing to sojourn new tariffs for 90 days, allowing the countries to spend time coming to a long-term agreement.

Chinese Foreign Minister Wang Yi told reporters shortly after the meeting that “Both sides believe that the principles agreement reached between the two presidents has effectively prevented the further expansion of economic frictions between the two countries.” The White House pronounced the meeting as “highly successful” and that the U.S. will leave existing tariffs on $200 billion of Chinese goods at 10 percent, rather than increasing to 25 percent starting in the New Year. In exchange, the two powerhouse economies will address Chinese trade practices that Trump has voiced frustration over: intellectual property theft, forced technology transfer, and non-tariff barriers.

If there is no agreement by the end of 90 days, tariffs will increase to the aforementioned 25 percent says White House Press Secretary, Sarah Huckabee Sanders. However, Trump’s economic adviser Larry Kudlow is optimistic, saying the meeting went “very well.” While neither side walked away with their maximum demands met, both economies benefit from the pause on tariffs – but there are still many discussions to come, which will ultimately determine the end-scenario.